Applebee’s Neighborhood Bar & Grill might not be in your neighborhood for much longer.
The parent company of Applebee’s and IHOP, DineEquity, announced Thursday that it could close up to 160 restaurants, according to USA Today. The company expects to close between 105 and 135 Applebee’s restaurants and 20 to 25 IHOP restaurants. The company previously announced that they would close 40 to 60 Applebee’s restaurants and 18 IHOP restaurants.
However, DineEquity also said that the two chains will open 125 locations globally, according to USA Today.
The company hasn’t decided which restaurants it will close. Applebee’s president John Cywinski said the restaurants on the chopping block will be older locations in areas that aren’t busy and restaurants that didn’t meet expectations, according to the San Jose Mercury News.
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"We are investing in the empowerment of our brands by improving overall franchisee financial health, closing underperforming restaurants and enhancing the supply chain,” DineEquity CEO Richard Dahl said in a statement. “We are focusing on operations and elevating the guest experience, whether in our restaurants or off-premise. We believe 2017 will be a transitional year for Applebee's and we are making the necessary investments for overall long-term brand health and expect to see improvement over the next year.”
DineEquity has struggled financially recently. According to CBS News, the company’s shares have lost nearly half their value this year.